RBS Securities in the US has launched its seventh exchange-traded product in the form of its first offering linked to China - the RBS China Trendpilot Exchange Traded Notes.
A source close to the listed products division at the bank told SRP that RBS wants to increase its international exposure and, as a result of many advisors being well aware of the growth opportunities found in China, it made sense to use an investment exposed to the second biggest economy in terms of purchasing power.
The exchange-traded notes are based on the performance of the RBS China Trendpilot Index, an index tracking either the BNY Mellon China Select ADR Total Return Index or the yield on a hypothetical notional investment in 3-month US Treasury bills, depending on the relative performance of the BNY Mellon index on a simple historical moving average basis.
Further attraction to the investment is provided through the fact that the BNY Mellon index comprises Chinese companies which are regulated on US soil by the US Securities & Exchange Commission (SEC), said the source. "With the knowledge that these companies are being regulated locally and in the US, investors are provided with another layer of confidence," the source said.